NZD/USD Technical Analysis: Profits Booked on Short Trade
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- NZD/USD Technical Strategy:Short at 0.7783
- Support: 0.7344, 0.7280, 0.7175
- Resistance:0.7448, 0.7532, 0.7616
The New Zealand Dollar fell against its US namesake as expected but the appearance of a bullish Morning Star candle pattern now hints at oncoming recovery. A daily close above the 38.2% Fibonacci retracement at 0.7448 exposes the 0.7506-32 area marked by channel floor support-turned-resistance and the 50% level. Alternatively, a move below the 23.6% Fib at 0.7344 clears the way for a test of the 14.6% retracement at 0.7280.
We entered short NZDUSD at 0.7783 and subsequently booked profits on half of the position. We will now close the remainder of the trade and move to the sidelines, waiting for a new opportunity to re-enter short following a corrective recovery.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.